The complete disclosure of this application is incorporated herein by reference. This invention relates to a computer-driven information management system for selectively matching credit applicants with money lenders through a global communications network. The system provides a criteria-based, user programmable consumer credit information distribution and reception tool with automated finance product response option capabilities.
For years, consumers have been invited by sellers and finance institutions to apply for credit (including loans and leases) in order to purchase consumer durable goods such as houses, vehicles, boats, large appliances, and the like. To obtain financing for such purchases, the consumer would fill out a credit application which would include personal information relevant to its identity and creditworthiness. This information was then distributed in some manner to a finance institution in the business of writing terms for loan or lease "products." The finance institution would research the creditworthiness of the individual using various resources and respond by phone or fax to the applicant with an "approval," pending documentation and other due diligence, or a "denial" of the application.
For purposes of this description, when a consumer sends information directly to a particular finance institution, the consumer is applying for "direct financing." When an intermediary of any sort, such as a seller of the desired goods, is used to gather and distribute applicant information to one or more finance institutions, the term "indirect financing" is used.
Indirect financing is valuable to finance institutions, sellers, and consumers alike. Finance institutions benefit from the arrangement in that they can capitalize on the "front line" presence of sellers to generate applicants for their finance products. Sellers have benefitted in two ways: one, their customer is able to obtain funds to buy their goods; and two, the finance institution will often reward the seller for sending them a new customer. The consumers benefit by obtaining financing for something they desire on terms acceptable to them.
The traditional avenues of indirect financing suffer from drawbacks and limitations. Prior to the invention, indirect financing was generally time consuming and costly, and was generally limited to an individual seller's access to finance product resources, and its skill and effort made in finding available finance products suitable for the customer. Moreover, depending on consumer credit quality, most credit applications that a finance institution receives through indirect channels do not result in a favorable outcome for anyone and yet, based on applicable Federal regulations, finance institutions are legally required to process and either approve or deny all credit applications received. For denied credit applications, the finance institution must prepare and forward a letter to the applicant stating that the application was denied. This procedure is costly and time consuming. It is also expensive for finance institutions to develop and maintain relationships with indirect channels.
One advantage of the present invention is the creation of an automated process for applicant information distribution by indirect channels, and selective reception of this information by finance institutions. Using the data processing and transmission components of the invention, requested applicant information is keyed into the system by a seller who then creates a potential distribution pattern for this information to finance institutions having access to the system. In addition to the information entered directly by the seller, the system automatically adds certain credit history information obtained through a credit bureau to create a unique electronic profile of the applicant.
Finance institutions can access the system at any time from a different data entry port. To avoid spending time and effort viewing all applicant profiles submitted to it through the system, the finance institution creates a model profile that outlines the characteristics of a desired credit applicant. The system then compares applicant profiles with the model profile of the finance institution and acts as a filter to remove from view information of any applicant that falls outside the profiled parameters.
As the system receives applicant information, it checks the information for potential distribution to any finance institution having access to the system. The system constantly monitors which finance institutions are logged-in and which applicant profiles need to be distributed where. As indicated above, an applicant profile is submitted to a finance institution if the finance institution is among the seller's selected distribution pattern and the applicant profile has characteristics consistent with the finance institution's model profile.
Once a finance institution is selected for receiving a desired applicant profile, it has several options. As one option, the system allows the finance institution to automatically present the seller with a profile-specific finance product based on just the fact that the applicant profile matched its model profile. As another option, the system allows the finance institution to view the electronic profile of the applicant, but without any personal information and no credit bureau information. This abbreviated applicant profile does not constitute a "credit application" and thus, no formal approval or denial is required by the finance institution. With this option, the finance institution can have a real person more finely determine the desirability of any given applicant. Even though the model profile will rule out many applicants as undesirable, finance institutions often have human judgment factors built into their approval processes. If the human factor deems the credit applicant unacceptable, the finance institution can simply remove the applicant's profile from their view and conduct no further processing. As yet another option, the finance institution can choose to automatically download all data from any applicant profile that meets its model profile. In this case, the finance institution legally receives a credit application and must respond to the consumer in writing with either a formal approval or a denial.
According to the present invention, credit applicant information is distributed on the basis of criteria established by both sellers and finance institutions. This is a significant improvement over traditional distribution systems controlled only by sellers. With traditional systems, it is not uncommon for sellers to "broadcast fax" every credit application to every finance institution with whom they have a relationship. Since a faxed credit application landing in a fax basket constitutes "receipt" of the application, the finance institution is required to not only decipher a generally hand-written faxed document, it must also key the information from the document into its own proprietary system, purchase a credit bureau, and then decide whether to approve or deny the application. The finance institution has no option but to do all of this once the application lands in its fax basket. As each finance institution has a varying appetite for different levels of creditworthiness, much time and effort is spent teaching sellers what type of credit applications are deemed desirable. With the present invention, this effort is unnecessary and significant processing costs are avoided.